WHAT is Single Room Occupancy and Will HUD pay me for learning how to start a group home for adults with disabilities?
Quick answers:
SRO = SINGLE ROOM OCCUPANCY. Why is this important for you (or I) to know? What is the benefit of this knowledge for you? Well to begin with, let’s think about why you are here in the first place, reading this blog and website. There are really only two (2) reasons:
- To help others
- To help yourself (either spiritually, emotionally or financially)
If you are honest with yourself, you will realize that the more money and financial freedom you have, the more time you will be able to spend on your spiritual and emotional health and improvement. Are you working from 6AM to 6PM with an hour drive home at night? Do you eat dinner at 7:30PM and need to be in bed by 9:30PM in order to wake up productive the following day? If so, then you only have 1-2 hours PER DAY to focus on your spiritual and emotional well-being. However, if you had more money- and therefore more time and more financial freedom, you would be able to improve the emotional, spiritual and physical lives of not just yourself but others as well…….
DOES THIS SOUND LIKE IT IS OFF-TOPIC FROM OUR SINGLE ROOM OCCUPANCY DISCUSSION?
IT IS NOT!
Here is why. Single room occupancy residences allow individuals to rent rooms from property managers or landlords. Often times, these individuals are disadvantaged people, disabled or simply low on money for whatever reason. Additionally, the rents of these individuals are often paid in part or full by some type of charitable institution or government entity. Possibly a division of HUD (housing and urban development) or potentially a state or county program that will pay rent DIRECTLY to you —-which gives you an incentive to accept this population as a client or resident.
Additionally, if you decide to purchase the property (rather than buy it) you could easily qualify for a tax abatement simply for providing a group home, transitional living, sober living or care home atmosphere for people in an SRO environment. How does this impact you? Well, remember a minute ago when I mentioned how the difference between a healthy emotional and spiritual bank account and a non-healthy emotional or spiritual bank account is often your true financial bank account?
Why SRO’s Are Profitable
– You rent a building for $2,000 per month
– The building has 8 rooms
– Each room has 3 tenants
– Each tenant pays $650 (you receive the money direct from the government)
– You have minimal expenses (DUE TO THE TAX ABATEMENT)
– YOUR INCOME STATEMENT LOOKS LIKE THIS:
$15,600 Gross Rents
($2,000) Rent or mortgage
($500) Utilities
($500) Maintenance
($1,500) Manager
$11,100 NET MONTHLY INCOME
Importance
Why is this important? Because under normal circumstances, this building or house would only rent out or generate $2,500 – $3,000 per month in Gross Rents. However, because we are splitting up the building and we are able to rent out each room to multiple people, the property generates a lot more income than a normal piece of property.
The best part of it all? You are helping out the community and receiving GUARANTEED RENTS FROM THE GOVERNMENT under the section 441 of the McKinney- Vento HAA.
Get Started Now
Sound like something you would like to do? You could easily get started with a small house or building….in fact you don’t even need to purchase it. Simply lease the building for a nominal sum, get some furniture in it, and go get some clients and or government contracts. There are literally THOUSANDS of people in your city needing help from you right now! Go out there and help them! Social workers, case managers, nurses, county and government officials are NEEDING PEOPLE LIKE YOU that can help out in the spare time and pay you for doing so.
SIGN UP for our FREE COURSE ON HOW TO START YOUR INCOME GENERATING GROUP HOME and learn the secrets of passive income and financial freedom now!
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